The dollar stood tall as investors focused on growing signs of a sure-footed global economic recovery. The dollar rose to multi-month peaks with other rivals on bet that massive fiscal stimulus and aggressive vaccinations will help the US to lead a global pandemic recovery.

The dollar traded high on Tuesday, supported by the downfall of Archegos Capital, the accelerating vaccinations, spike in Treasury yields and a wave of optimism over massive stimulus in the U.S. that stoked inflation concerns.

The dollar traded high against most major currencies, as cautious market mood pushed investors to safety, while the greenback attracting interest on rapid vaccine rollout and U.S. economy optimism. Dollar also rose against oil-liked currencies as the ship blocking the Suez Canal re-floated.

The dollar traded near multi-month highs against most major currencies on Friday, with one notable exception to the British pound. The dollar was supported by a wave of optimism over improving U.S. economic data, the rollout of coronavirus vaccines, and rising Treasury yields.

The U.S. dollar rose Thursday as investors hang on to the safe-haven currency. The dollar hit a fresh four-month high against the euro while the British pound bouncing out of a 6-week trough touched overnight.

The flight to safety benefited the dollar and Treasuries on concerns over a third COVID-19 wave in Europe, potential U.S. tax hikes and escalating tensions between the West and China, that sapped risk appetite.

The dollar edged lower as investors looked to Congressional testimony by Fed Chair Jerome Powell and Treasury Secretary Janet Yellen later today for clues on whether they may seek to slow rising yields. The dollar’s attraction of late was boosted as Feds appeared to tolerate recent rises in yields.

President Erdogan stunned investors over the weekend by replacing the hawkish central bank governor with a critic of high interest rates. Worries that events in Turkey will cause disruptions in other financial markets supported dollar because of its status as a safe-harbour currency.

The dollar held firmer on Friday, supported by higher Treasury yields and falling stock markets, as investors digested the Federal Reserve’s pushback against expectations of any early interest-rate hikes.

The dollar extended declines against commodity currencies and was on the defensive on more risk-sensitive currencies, as Fed Chairman Jerome Powell stood pat on its dovish interest rate. While edged up against the JPY & CHF as improving risk appetite hurt traditional safe-harbor currencies.

The U.S. dollar held gains against major currencies & edged up against the commodity currencies on Wednesday as investors looked to the U.S. Federal Reserve’s policy meeting. Bitcoin traded around $55,000, retreated from its above $61,000 peak.

The U.S. dollar clung to small gains on Tuesday as caution reigned in currency markets ahead of several major central bank meetings, beginning with a 2-day Federal Reserve gathering due to start later today, followed by the BoE and BoJ later in the week.